A ChevronTexaco led group may more than double to 67 million tons a year (1.34 million barrels a day) the capacity of its pipeline to export oil from Kazakhstan through Russia, as the former Soviet state pumps more fuel to try and capture market share from OPEC.
The Caspian Pipeline Consortium will consider in November a study on building pumping stations to increase the $2.7 billion pipeline's capacity from the present twenty eight million tons a year, said Ian MacDonald, CPC's general director.
CPC has been told by its owners that they plan to boost output at their oil fields in Kazakhstan. The central Asian state has said it expects to more than triple oil output by 2005 to 3.3 million barrels a day, almost equal to the amount pumped by Iran, OPEC's second largest producer. Kazakhstan is a net oil exporter, selling three quarters of its oil output overseas.
“Forecasts we received from our shareholders state that additional capacity will be required,” MacDonald said. “Kazakhstan will be a tremendous producer of oil and” its exports “will be enormous.”